Contract Negotiations

While SelectHub can help you build and run a formal RFI, RFP and Proof-of-Concept (POC), the final stage in the vendor selection process is developing a contract negotiation strategy. A poor objective is to bleed every last cent out of the vendor for the lowest price. Remember, you want to “partner” with your vendor so that BOTH of you will meet your corporate goals and objectives.

However, the typical business purchases software technology on rare occasions while the software vendors negotiate deals on a regular basis. SelectHub offers a third-party independent “Procurement Officer” to successfully negotiate an agreement where both sides benefit in every area while achieving a fair and equitable deal.

Negotiating a contract is coming to an agreement with various parties on a set of deliverables. Typically each party compromises on some issues to achieve their goal. Although there are a lot of issues to agree upon, normally it boils down to two essential elements: business risk and projected business value (typically measured as increased revenue or profitability.)

There are also other business elements to discuss along with associated legal issues that need to be negotiated. Most contracts need to be separated into smaller sections based on the content such as scope of service, cost, value equivalency, support, quality of service, confidentiality, acceptable conduct, breach of contract and termination, and requisite service levels. Each of these may even require a separate sub-contract (e.g. defining service levels may require a separate service level agreement, or SLA, document).

SelectHub can assist our clients with contract negotiations in the following ways:

• Lead the negotiation
• Define the approach
• Create a vested partnership between all parties
• Better client relationships
• Provide guidance during the negotiation process
• Ensure that elements involving cloud platforms, software and performance are negotiated
• Assist in areas that businesses do not normally consider as a part of everyday operations
• Review security elements, auditing in the cloud, etc.

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